Gold World News Flash |
- Ira Epstein's Weekly Metal Report
- How Much More Pain for Bullion’s Faithful?
- A Look Back at 2010: Precious Metals Prices Climb as Confidence in Currencies Wanes
- Silver's Dip Will Be Brief
- Precious metals bull market nearing an end? – Update
- Year To Date Performance of a Few Dollar Denominated Assets
- A Deliberate ‘Operation', A Contrived Event : Parts 1 and 2
- The SP 500 May Hold Clues to the Peak in Gold and Silver
- Gold Seeker Closing Report: Gold and Silver Fall Over 2% and 8% More
- When a Gold Necklace Isnt Jewelry
- From The Desk of Peter Grandich
- When a Gold Necklace Isn’t Jewelry
- Gold drops into a very strong support level and bounces
- A Dollar Collapse? No Way – The U.S. Dollar Rocks! (satire)
- Gold Price Closed at 1480 Silver Price Closed at 36.23 and Hit 34.25 in Aftermarket
- Silverfinger - The True Story Of Nelson Bunker Hunt
- Having called plunge, Grandich and Davies jump back in; Sinclair says: Relax!
- And So It Continues: Another 92 Thousand Ounces In Physical Silver Withdrawn From Comex Despite Historic Paper Collapse
- Oil crashes 10 percent in record rout
- The Big Lie
- The Foundation For Gold At $5,000
- In The News Today
- The anatomy of silver's deep dive
- Capital Context Update: Systemic Risk Rising and Equity Underperformance
- Ben’s Secret Plan!
- Guest Post: Today's Silver Scandal
- Hanging By A Thread
- Market Manipulation Ideas Spreading ‘Beyond Lunatic Fringe’?
- Janet Tavakoli: Today’s Silver Scandal
- Mike Krieger Exposes "The Big Lie"
| Ira Epstein's Weekly Metal Report Posted: 05 May 2011 06:07 PM PDT Silver had/has become a driving force in the precious metal market, overtaking gold in terms of upside and downside momentum. The Gold/Silver Ratio Chart below shows that this ratio had moved dramatically in silver's favor this year, as that ratio dropped from a high of 50 down to 32 just days ago. Today it is back to 40.
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| How Much More Pain for Bullion’s Faithful? Posted: 05 May 2011 06:01 PM PDT Gold and Silver punished the faithful yet again on Thursday, demolishing the technical supports we'd thought would arrest the decline. The sturdiest of them barely evinced a bounce, a fact that telegraphed the onslaught that was to follow.
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| A Look Back at 2010: Precious Metals Prices Climb as Confidence in Currencies Wanes Posted: 05 May 2011 06:01 PM PDT Bullion Management Services
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| Posted: 05 May 2011 05:58 PM PDT by Jason Hommel Silver dipped below $36/oz. this morning, down about 8% from yesterday, and down about 27% from the high last week of about $49.50/ per troy ounce. (A Troy oz. is about 10% heavier than a the more common international avoirdupois ounce.) Some people are saying "this is like 1980 all over again" and that silver will now crash. Nothing could be further than the truth. The truth is that the amount of money they have printed up since 1980 is ten times higher, so if you adjust for inflation, the peak price from 1980 should be more like $500/oz. in today's dollars. The next key difference is that in 1980, interest rates, the amount paid on bonds, rose to over 20% per year. Today, interest rates are close to zero. Interest rates make holding bonds more attractive. The next thing is that the US government money printing driven inflation is just beginning, it's not remotely close to ending. The US annual budget is about $3.8 trillion, and the government collects about $2.2 trillion, leaving a gap of about $1.6 trillion that is met by money printing, which makes the value of the dollar go down. (http://tinyurl.com/3ozdljx (April 7th news item)) $1.6 trillion of new money can also expressed as $1600 billion, or $1,600,000 million. For comparison's sake, new investment demand for physical silver last year was only 250 million ounces, at, let's say an average of $35/oz., was just under $9 billion, or only $9000 million. Silver is not in a bubble in terms of prices. The bubble in stocks in 1929 was caused by debt financing. The bubble in housing in 2007 was caused by debt financing. You cannot borrow money to buy silver. Thus, silver is NOT in a bubble. Exceptions: Yes, you can borrow money to speculate in silver, but no silver is ever purchased at the time that you purchase futures, or options on silver. And the futures market is known for having an overall open interest of over 800 million oz. of silver, while less than 40 million oz. of silver are available for delivery! Yes, also certain private firms, who have horrible reputations in my opinion, will let you borrow money "to buy silver", but you must keep the silver with them, and it's doubtful that they ever actually purchase the real silver either. In silver's case, the availability of debt, and use of leverage is used to prevent you, distract you, dissuade you, from actually buying silver. This makes silver an "anti-bubble"; the opposite of a bubble. This video claims that silver was worth about $1218/oz. in the Ancient Roman World! One article last week noted that "8 years of global Silver supply changed hands last week". He could not calculate how much silver traded hands in the OTC or "over the counter" markets that are unreported and unregulated, which are typically 20 times larger than the visible markets like the COMEX and the ETFs. That article shows that the amount of paper trading of silver has recently grown to perhaps 1000 times larger than the real silver market. At last week's rate of about one year of global silver supply traded in a day, with 250 trading days in a year, suggests 250 times as much paper silver trading than real silver, but that's not counting the much larger OTC markets. Again, with all the flurry of news articles on silver this last month, nobody has mentioned the BIS report that I've highlighted for the past 1-2 years that shows that world banks have liabilities (that's debts) in "other precious metals" (mostly silver) of anywhere from $100 to $200 billion, and that was way back when silver was $20/oz. That's about 15 years of annual world production, with swings into and out of the banking system of 8 years of annual production in less than 6 months. Thus, mostly all of the silver in all major LBMA banks in the world is thus likely fake silver, all fraudulent paper silver, nothing is real there. I would love to know how much real silver they do have, as obviously, they have to have at least some silver to function with their "fractional reserve silver banking" that they do. Thus if a bank holds your silver, I'm 99% certain that they don't physically hold YOUR silver for you, and that you know nothing about the real fundamentals of the silver market. When you read that an commentator or analyst is "long SLV" you can know for certain that that commentator knows almost nothing about the silver market. When debt is used to actually buy real silver, the extra buying would artificially push the price up. When banks actually owe silver that they neglected to actually purchase, their lack of buying artificially pushes the price down. Again, silver is the opposite of a bubble. People have not yet learned that silver is payment in full. Silver is not a promise to be paid. Owning a promise to be paid in silver is about as bad as owning paper dollars — the value of both of which has (primarily and fundamentally) only one way to go, which is down. Government is in a bubble. US paper money is in a bubble. The US bond market remains in a bubble. Somebody just posted to my facebook, "everybody is selling out", "Soros is selling his gold", etc. No, the opposite is true. Nobody was ever in. The real fundamentals of silver show that less than 6% of 1% of paper money in the USA even bought any real silver last year. That means that silver buying would have to be 20 times more, just to get to about 1% of people buying silver! Silver the opposite of a bubble. This dip will be brief. Silver at $200/oz. is still a "price dip" compared to where the silver price is headed. Click Here for the original source at silverstockreport.com.
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| Precious metals bull market nearing an end? – Update Posted: 05 May 2011 05:45 PM PDT On April 24th, we wrote this article and posted this chart:
We said the end of the precious metals bull market might come to an end very soon. Here is an updated version of the chart above: A picture often says more than a thousand words, doesn't it?
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| Year To Date Performance of a Few Dollar Denominated Assets Posted: 05 May 2011 05:38 PM PDT | ||||
| A Deliberate ‘Operation', A Contrived Event : Parts 1 and 2 Posted: 05 May 2011 04:43 PM PDT "Buy when there is blood in the streets, even if the blood is your own." (By the way, many of the financial world's brightest minds, including Ben Davies, have now closed their silver short positions and are once again going long.)
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| The SP 500 May Hold Clues to the Peak in Gold and Silver Posted: 05 May 2011 04:24 PM PDT The single biggest news event this week besides the Royal Wedding was Federal Reserve Chairman Ben Bernanke's televised press conference. The Federal Reserve is attempting to appear more transparent after coming under pressure from the ... Read More...
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| Gold Seeker Closing Report: Gold and Silver Fall Over 2% and 8% More Posted: 05 May 2011 04:00 PM PDT Gold climbed $7.40 to $1521.80 in Asia before it fell back to $1496.55 in London and then rebounded to back above $1510 by midmorning in New York, but it then fell to a new session low of $1477.33 in the last hour of trade and ended with a loss of 2.18%. Silver rose slightly to $39.57 in Asia, but it then fell back off for most of the rest of the day and ended near its late morning low of $35.708 with a loss of 8.13%.
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| When a Gold Necklace Isnt Jewelry Posted: 05 May 2011 03:40 PM PDT Casey Research
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| From The Desk of Peter Grandich Posted: 05 May 2011 03:11 PM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! May 05, 2011 05:00 PM [LIST] [*]Please remember the daily email only has the last 5 postings of mine. Some days (like today) there were more than 5 new posts since the last email so make sure you read the actual blog as well. [*]Below is an alert sent out by the good folks at GATA: [/LIST] Le Metropole Members, Having called plunge, Grandich and Davies jump back in; Sinclair says: Relax! Submitted by cpowell on 05:32PM ET Thursday, May 5, 2011. Section: Daily Dispatches 8:29a ET Thursday, May 5, 2011 Dear Friend of GATA and Gold (and Silver): GATA is not in the trading business or an investment adviser, but when our friends in those lines of work talk about the precious metals, we know that our other friends like to listen — especially when our friends with great trading records talk. At 11:33a ET today Peter Grandich of the...
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| When a Gold Necklace Isn’t Jewelry Posted: 05 May 2011 02:13 PM PDT http://www.caseyresearch.com/editorial.php?page=articles/when-gold-necklace-isnt-jewelry&ppref=TBP228ED0511A When it comes to supply and demand, what you've been told about gold jewelry is wrong. That's a strong statement, but I've got a firsthand account to back it up. Most industry organizations separate jewelry from investment when they tally the numbers on the uses for gold. This makes sense, of course, because one [...]
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| Gold drops into a very strong support level and bounces Posted: 05 May 2011 02:11 PM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] The market has found good buying just above $1460 and continues to push higher off of this level as it enters very early trading in Asia. The drop of nearly $110 has stimulated value based buyers of the metal who have been waiting on a pull back. If the market can push through $1500 and hold that level and not sink back below it, it will be friendly. Some will depend on the payrolls number out tomorrow. If it is a stinker and comes in below expectations, we might see more risk aversion and potential selling as the unthinking, knee-jerk reaction will be to rush to the "safety" of the US Dollar ( I have to gag when I write this). The Yen also will probably benefit although the Japanese monetary authorities are probably already saying things unfit to print over its recent climb back up to its last whipping level. Even at that, the market has fallen, so far, so quickly, that any short who wishes ...
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| A Dollar Collapse? No Way – The U.S. Dollar Rocks! (satire) Posted: 05 May 2011 01:43 PM PDT
The other day all of the "doom and gloomers" were crying that the sky was falling because the U.S. dollar had fallen for 8 trading days in a row. They were proclaiming that the "end of the dollar" was near because the dollar index was approaching a new record low. The following is how an article from yesterday in the Washington Post described the recent slide of the dollar….
Well guess what? The dollar index moved back up today. That is what happens – currencies go up and currencies go down. There is no need to get your pants in a twist over it. When the U.S. dollar goes down, it makes our products more affordable overseas. When other nations buy more of our stuff that helps our businesses. So when the dollar declines a little bit that is nothing to be alarmed about. So far in 2011, the U.S. dollar has only lost about 6.5 percent of its value. Should we be freaking out about a measly 6.5 percent? I don't think so. Do you want an even "scarier" number? The dollar has fallen by 17 percent compared to other major national currencies since 2009. Oooooooooohhhhhhhhhhhh – are you frightened out of your mind yet? You better run outside Chicken Little – the sky might be falling. The problem is that there are so many tinfoil hat wearing conspiracy theorists running around declaring that the U.S. dollar is dying that some people are actually starting to believe it. Do you want proof that the U.S. dollar is going to be just fine? Here you go…. Just check out what U.S. Treasury Secretary Timothy Geithner recently told the Council on Foreign Relations….
Bam! You have the very words of the U.S. Treasury Secretary right there. He has promised the we "will always" have a strong dollar policy. Geithner has said it and that settles it. Any questions? Who are you going to believe? Are you going to believe the U.S. Treasury Secretary or are you going to believe a bunch of crazy Internet bloggers with blogs with titles such as "Economic Disaster" and "The American Dream Has Been Flushed Down The Toilet"? Let's get real. The U.S. dollar is just fine and there is not going to be some mythical "dollar collapse". But isn't the price of gasoline going up? Sure it is. But that isn't the fault of the Federal Reserve. They don't set prices for gasoline. The reality is that prices for different things go up and down. That is what a free market economy looks like. Right now the price of gasoline is actually lower than it was back in 2008….
So shouldn't we actually be talking about falling gasoline prices? I don't know about you, but I sure am glad to be paying less for gasoline than I was back in mid-2008. But the tinfoil hat crowd will "cherry pick" statistics to make it seem like things are worse than they really are. They will break out scary sounding statistics such as the fact that over the past 12 months the average price of gasoline in the United States has gone up by about 30%. LOL – cry me a river. Life is tough. People will cry over just about anything these days. Who really cares that the average American driver will spend somewhere around $750 more for gasoline in 2011? That is just a sign that the economic recovery is in full swing. Do you know how much all of that money is going to help our oil companies? They are going to be swimming in cash, and all of that wealth will "trickle down" and help out the folks on main street. You would think that the half-crazed economic bloggers out there would be thrilled by all of this, but no – they just keep trotting out the "inflation boogeyman" over and over and over. Well, you know what? According to no less of an authority than Federal Reserve Chairman Ben Bernanke, we basically have close to zero inflation in the United State right now. You believe the Federal Reserve, don't you? If not, there is probably something wrong with you. Unfortunately, we have got a whole bunch of these self-proclaimed "experts" (who are really just legends in their own minds) running around proclaiming that inflation is not calculated the same way that it used to be. Well, you know what? They are right. But it isn't some great conspiracy. The truth is that we have "improved" the way that inflation is calculated 24 times since 1978. The government is always trying to become more accurate. What is wrong with that? But today we have a bunch of amateurs running around trying to tell us what the "real" rate of inflation actually is. For example, a New York post analysis claims that the rate of inflation in New York City has been about 14 percent over the past year. So how many prices did they measure? A dozen? Two dozen? Who are you going to trust more – the Federal Reserve or the New York Post? Perhaps the New York Post should just stick to reporting on the latest Elvis sighting and leave economics to the big boys. If hack reporting by publications like the New York Post wasn't bad enough, we've also got numbskulls like John Williams from a website called "Shadow Government Statistics" running around proclaiming that the sky is going to fall because of U.S. government debt. The following is a sampling of the smelly stuff that Williams is spreading around….
Does anyone actually believe any of that nonsense? How long has Williams been predicting that U.S. government finances are going to collapse? Yes, he has been doing it for a very, very long time. Has the sky fallen yet? Are we living in an economic wasteland? Has there been a U.S. dollar collapse? No. Look around you – everything is just fine. Every time the U.S. economy has had a recession in the past, what has happened? The economy has recovered and has gotten larger than ever. And that is exactly what is happening again. But sadly, there are more Americans than ever that actually believe that we are headed for economic disaster. In fact, there are some websites where they actually debate what the best place to live in the United States will be when the "economic collapse" happens. Can you believe that? People need to grow up. Yes, the U.S. government is in debt. That should be no surprise. U.S. government debt is normal. The truth is that our financial system is designed to have U.S. government debt constantly expand and for there to always be a little bit of inflation in the system. When the U.S. government goes into more debt, more money is created. If there was no debt in our society there would be no money. So all of these bozos that claim that they want to get rid of all government debt don't know what they are talking about. We need to trust that the experts over at the Federal Reserve know what they are doing. The prudent moves by Ben Bernanke have helped the economy to recover after the horrible financial crisis of 2008. Instead of being criticized, he should be commended. There is a reason why he was named "Person of the Year" by Time Magazine in 2009. The Federal Reserve is watching inflation. If it starts spiking up a little bit they will stomp it out. They know what they are doing. This is 2011 – the people running things were produced by some of the greatest academic institutions on the planet. Nothing is going to catch them by surprise. They know exactly what our problems are and how to solve them. So quit listening to the tinfoil hat crowd. Yes, the U.S. dollar will fluctuate a little bit relative to other major currencies. That is nothing to be alarmed about. There is not going to be a dollar collapse so stop waiting for one. The U.S. dollar is always going to be the greatest currency on earth. Why? Because the United States is the greatest nation on earth. After all, what other nation on earth could produce Justin Bieber, Jim Carrey, Simon Cowell, Pamela Anderson, Catherine Middleton, Michael J. Fox, Seth Rogen, Brendan Fraser, Jason Priestly, Tom Green, Ryan Reynolds, Mike Myers, Kiefer Sutherland, Howie Mandel, Keanu Reeves and William Shatner? ——————– Hopefully by now you have figured out that this is a satirical piece demonstrating how ridiculous much of the propaganda in the mainstream media really is. Thank you for taking the time to read my twisted attempt at humor. Click Here for the original source. http://theeconomiccollapseblog.com/archives/a-dollar-collapse-no-way-the-u-s-dollar-rocks-propaganda
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| Gold Price Closed at 1480 Silver Price Closed at 36.23 and Hit 34.25 in Aftermarket Posted: 05 May 2011 01:37 PM PDT Gold Price Close Today : 1,480.90 Change : -34.00 or -2.3% Silver Price Close Today : 36.23 Change : -3.15 or -8.7% Platinum Price Close Today : 1,779.20 Change : -48.10 or -2.7% Palladium Price Close Today : 710.70 Change : -35.90 or -5.1% Gold Silver Ratio Today : 40.87 Change : 2.41 or 1.06% Dow Industrial : 12,584.17 Change : -139.41 or -1.1% US Dollar Index : 74.10 Change : 0.98 or 1.3%   
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| Silverfinger - The True Story Of Nelson Bunker Hunt Posted: 05 May 2011 12:33 PM PDT
Over 30 years ago, a man by the name of Nelson Bunker Hunt hatched the perfect plan: protect his inherited wealth (which then was one of the largest legacy fortunes in the world) from the inflationary destruction of "paper" assets by converting his assets into silver, and in the process cover the silver market, and send the price of silver to an inflation adjusted price of over $140 (nearly three times higher than the nearly record nominal silver price hit last week). Understandably, Hunt's name has appeared very often in the popular media in recent months, since after all it was the "Hunt" price that the May 1 silver smackdown (which will most certainly never be investigated) that sent silver from $48 to $42 in seconds that was being protected by the paper cartel. Yet just who is Nelson Bunker Hunt? And how did he cover the silver market when did? What exactly did he do, and is someone doing a comparable silver cornering right now? And, most importantly, why? The answers, all of which are provided in this September 1980 Playboy article reprint, will surprise and astound many, primarily due to the myriad parallels between the world of the 1970s and our own. What follows is one man's attempt to escape from the "system." From "Silverfinger"
Full article (pdf) Silver Finger by Harry Hurt III - September Issue 1980 - Playboyh/t Whit
This posting includes an audio/video/photo media file: Download Now | ||||
| Having called plunge, Grandich and Davies jump back in; Sinclair says: Relax! Posted: 05 May 2011 12:32 PM PDT 8:29a ET Thursday, May 5, 2011 Dear Friend of GATA and Gold (and Silver): GATA is not in the trading business or an investment adviser, but when our friends in those lines of work talk about the precious metals, we know that our other friends like to listen -- especially when our friends with great trading records talk. At 11:33a ET today Peter Grandich of the Grandich Letter, who had called the plunge in the precious metals exactly, announced that he had returned to being fully invested in them: http://www.grandich.com/2011/05/time-to-go-back-in-gold-1481-silver-35-7... Tonight in an interview with King World News, Hinde Capital CEO Ben Davies, who had also called the plunge exactly, reported that his firm had covered its hedges and was getting back into silver too. "This is the start of a great opportunity to accumulate silver," Davies said. "All the key fundamental issues in the world have not gone away, nor those specific to silver, such as the fact that it is under-owned and short of supply in the medium-term." An excerpt from that interview can be found at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/5/5_Ben... And at 2:22p ET today the dean of gold traders, mining entrepreneur Jim Sinclair of JSMineSet.com, wrote that the plunge is only proof that gold will make a major move upward in June. Sinclair's advice to the friends of gold and silver was simply, "Relax": http://jsmineset.com/2011/05/05/the-foundation-for-gold-at-5000/ Grandich, Davies, and Sinclair will be among the speakers at GATA's Gold Rush 2011 conference in London in August. You can learn about the conference and register for it at its Internet site here: CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Join GATA here: World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT Prophecy Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php
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| Posted: 05 May 2011 12:06 PM PDT At this rate, tomorrow, for the first time, we will see a 32 handle in Comex registered silver ounces, where apparently despite the massive drubbing in paper silver, demand for physical inexplicably persists.Speculators to be blamed for this in 5…4…3…
Click Here for the original source.
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| Oil crashes 10 percent in record rout Posted: 05 May 2011 12:00 PM PDT
NEW YORK (Reuters) – Oil plunged more than 8 percent on Thursday, heading for the third biggest daily drop in dollar terms on record, as concerns about economic growth and monetary tightening spurred a sell-off in commodities. NEW YORK (Reuters) – Oil plunged more than 8 percent on Thursday, heading for the third biggest daily drop in dollar terms on record, as concerns about economic growth and monetary tightening spurred a sell-off in commodities. U.S. crude tumbled below $100 a barrel in heavy trading volume after weak economic data from Europe and the United States fed concerns that have battered commodities all week. German industrial orders fell unexpectedly in March while U.S. weekly jobless claims hit eight-month highs. World stocks fell and the 19-commodity Reuters-Jefferies CRB index swooned more than 4.5 percent, heading for its biggest weekly decline since December 2008. "The longer-term bull cycle is still in place, but this correction may have a life span of several months, as weaker economic data is fueling this correction to a large part," said Sterling Smith, senior analyst for Country Hedging Inc in Minnesota. Brent crude futures for June traded down $10.28 to $110.91 a barrel at 2:10 p.m. EDT, the fourth straight day of losses, smashing below the 50-day moving average as the sell-off picked up steam after prices dropped below $120 a barrel. Brent was headed for its biggest one-day drop in dollar terms since shortly after the collapse. U.S. crude dropped below $100 for the first time since March 19. It was off $9.54 at $99.70 a barrel. Trade levels surged, with volumes for Brent up 80 percent over the 30-day moving average and 70 percent over the 250-day average in afternoon activity. U.S. crude volume was 36 percent over the 30-day average. The disruption of oil exports from Libya, concerns about the supply impact of unrest in the Middle East and Africa, and the weaker dollar have sent crude to the highest level since 2008, with Brent topping $127 a barrel this year and U.S. crude over $114 a barrel. Selling pressure on oil and other commodities came on several fronts this week, with investors weighing factors from the death of Osama bin Laden to the impact of higher fuel and commodity costs on the economies of consumer nations to monetary policy in major economies. "Crude oil is selling off sharply for two primary reasons: QE2 is coming to an end in June and without a QE3 behind it, it will take liquidity out of the market, hurting risky asset classes such as commodities," said Chris Jarvis, senior analyst, Caprock Risk Management in New Hampshire. "With Osama bin Laden dead, the market is adjusting the geopolitical risk premium down accordingly. Given this, speculative money is being taking off the table." India's central bank raised rates more than expected on Tuesday, and expectations No. 2 oil consumer China could take similar actions helped push down prices on Wednesday. The euro headed for its biggest slide against the dollar since November after the European Central Bank hinted interest rates were unlikely to rise next month, short-circuiting a rally that had driven the currency to a 17-month high. (Reporting by Eileen Moustakis, Gene Ramos, Robert Gibbons, Emma Farge, and Jeffrey Kerr in New York; Francis Kan in Singapore, Claire Milhench and Dmitry Zhdannikov in London and Jeffrey Kerr in New York; Editing by David Gregorio)
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| Posted: 05 May 2011 11:57 AM PDT by Mike Krieger I feel completely blessed to be alive right now. To be a witness and participant in a moment in human history that will be written about and passed down in tales for as long as humanity remains on this planet. We are currently observing the evaporation of what Nazis referred to as "The Big Lie." In very basic terms the concept of The Big Lie is that if you are going to lie you may as well lie big. So big in fact that the majority of well meaning citizenry could never imagine anyone lying on such a grand scale (particularly not their government "officials") so that they don't even question the basis of their own reality. In the case of the United States the Big Lie is that we have a free market capitalist economy. Instead we have a corporatist/fascist economy that enriches three main groups. Wall street financiers, the military industrial complex and large multi-national corporations that don't pay taxes. So that begs the question, how can the American people be so brainwashed into thinking they live in this false reality? It's very easy. It's all about the money. Up until recently (and by that I mean the last three years) how many people asked what is a dollar? How is it created and who controls the creation? Essentially no one did. The financial crisis changed everything because as the false reality finally cratered under its own weight the super elite that robs and rapes the rest of us saw their world crumbling and they panicked. In order to save themselves, their reputations and most importantly their wealth they responded in such an absurd and selfish manner it shook millions of Americans from their slumber. People started asking basic questions they never even thought to ask before. One of those people was me. When I discovered how completely fooled I had been my whole life and figured out how the scam works I started writing about it. I relied on those great men that have been writing about it for decades in relative obscurity to educate me on monetary and financial history. I then shared what I learned with anyone that would listen. I am pleased to report that it has been a tremendous success and enough people are now awake for the system to be overthrown. That is what is in the process of happening now. Yet as I have said many times before, the super elite has all the tools of control still and will not go down easy. Think about what despotic leaders have done to people in times past. The torture, the exterminations, anything to have power. I believe many at the helm within the financial system and military-industrial complex in the U.S. are just as evil as those from the past. That said, in the age of the internet their methods of control have changed and the war going on between truth and lies playing out right now has two main battlefields. There is the information war being waged by the alternative media vs. the dinosaur propaganda media. The second battlefield is the financial markets where honest money (gold and silver) is battling fraud fiat money controlled by the banksters who give The Bernank his marching orders. These orders are not designed to help the economy (which is why the economy remains horrible) they are designed to preserve the status quo and protect their ill gotten gains. The establishment is getting wiped out on both battlefields. It is an amazing sight to see. The Bernank Has No Clothes The Bernank's inaugural press conference last week was nothing short of a disaster. The Wizard of Disneyland came out from behind his curtain and despite softball questions from "journalists" couldn't make any sense whatsoever. I just listened to it again a few minutes ago. His answers were full of contradictions and backwards logic. The first time the word "inflation" came out of his mouth in response to a question he started stuttering. When asked about the dollar he said "the treasury is the spokesperson for the dollar." Come again Bernank? They are FEDERAL RESERVE NOTES and you create them out of thin air. And lots of em. The Big Lie. When talking about gasoline prices rising and the inflation in commodity costs in general he claims the Fed isn't responsible, yet then he claims that if they keep going up and feed into core (which they are big time already and wait until you see Wal-Marts price hikes in June) the Fed would have to respond. Huh? If you aren't responsible for the increase then how can you act to stop them and why would you act if you didn't cause it in the first place? Nothing though exposed this fraud of a man more than when he talked about Carmen M. Reinhart and Kenneth Rogoff's book "This Time is Different." The Bernank offers his view that the reason why prior financial periods of crisis took so long to recover from was because officials didn't act properly. There you go! This exposed the man and his absurd statist mind for all to see. He thinks he is the superman that the world has been waiting for. He seems to think that in his brilliance and money printing he can just make the prior bubbles go away and we can get going again. Let's think about human nature for a second. We have had government's in charge of civilizations since the beginning of time. Do you really think the majority of those governments really just stood by and watched after a financial crisis? Hardly. Furthermore, looking at the 1930's it is very clear the government did anything BUT stand by idly (another lie). They interfered like crazy. That is why the U.S. economy NEVER recovered naturally from the 1930's. Never. I have said for years that there is no stopping the mega cycle and that is what we are in. I also said that things also never play out the same way. You have to look at the players involved. The Bernank is haunted by his mythical view of the Great Depression and deflation. He also thinks he can outsmart natural cycles. So when Von Mises says there is no end to a credit bubble other than deflationary bust or a collapse in the currency you have to ask yourself which one it will be? I have said for years it will be a destruction of the currency system and that what has been happening but what we have seen so far is merely an appetizer. The Markets, Gold and Silver It is very timely that I get to write today for the first time in a month. Last week, the entire Big Lie was collapsing left and right. When the Bernank spoke, gold soared. Obama came out with his latest reality tv show episode called "The Birth Certificate." Still his approval ratings plunged. Gasoline was spiking. Confidence in Disneyland was circling the toilet bowl. Nothing was working for the establishment. So what did you think would happen this week? Well, exactly what is happening. A monster PR campaign to get confidence back. Let's go back to Sunday night. We got Bin Laden! (watch this interview PLEASE http://www.youtube.com/watch?v=UXPg4yblXM0) Silver plunges 13% in Asia! Brain dead sheep outside the White House waving flags yelling USA, USA! It was eerily reminiscent of people in the Arab world celebrating after 9/11. As many of you know, I believe the markets are heavily manipulated to paint a picture. However, I also believe that markets always win in the end. This is a war in which the super elite will not give up or reform the system on their own accord. This is not just a battle for money it is a part of a much larger battle for souls. Therefore, they will employ as aggressive and deadly tactics in markets as they do overseas when they launch wars every other week. That is what I think has happened this week. So is it over? I have no idea but I like buying physical silver again at these levels and I also love the mining shares here. I have NEVER been more bullish on physical gold and silver right now. Everyone has an opinion now and that is fine. But I told people to short oil in 2008 and buy it back in the $40s on the record and I also recommended buying silver at $10/oz. This is no bubble. We are in the midst of a major counterattack. The sheep will sell or even short. The wolves always eat the sheep. That is all this is. Remember, this is a war between truth and lies but the truth is winning and will win. You can see the extent of their fear by what is happening this week. Stay calm, cool and add to your physical. A Splintering in the Establishment One of the things I have been waiting to see was when people in the "establishment" start to speak out more and refuse to cooperate with the more psychopathic elements with the government, Wall Street and the military/industrial complex. I am now starting to see increased signs of this. This is still under the radar but it is happening and accelerating. Sides are being taken. This is going to be very interesting to watch. Just remember, the system is coming down and there is nothing they can do to stop it. They can only separate you from your real money (gold and silver) before it becomes clear to all. The action this week is a last ditch attempt. The game is already over. Finally, please take the time to watch this. It is long but one of the most important documentaries I have even seen. http://www.youtube.com/watch?v=0Zt9BZD7mlc All the best, Click Here for the original source. http://www.zerohedge.com/article/mike-krieger-exposes-big-lie
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| The Foundation For Gold At $5,000 Posted: 05 May 2011 11:50 AM PDT View the original post at jsmineset.com... May 05, 2011 10:22 AM Dear CIGAs, Simply stated, the drop at this time will in retrospect be seen as the foundation for gold trading not at $1650 but rather at $5000. Armstrong was right and wrong. He looked for a reaction in gold at a time it would not happen, to a price that simply did not and will not occur. He is absolutely right that as June approaches this type of action is the foundational proof of a major move in gold coming out of June and continuing with the normal drama into 2015. Relax!...
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| Posted: 05 May 2011 11:50 AM PDT View the original post at jsmineset.com... May 05, 2011 05:38 AM Jim Sinclair's Commentary The technical dollar rally has no legs. Asian trio to study dollar alternative: report May 4, 2011, 7:59 a.m. EDT By Chris Oliver, MarketWatch HONG KONG (MarketWatch) — Officials from China, Japan and South Korea agreed on Wednesday to study a proposal to use their own currencies for regional trade settlement instead of the U.S. dollar, according to a Dow Jones Newswires report. The report cited a joint communiqué issued in Hanoi. Finance officials from the three big Asian economies said they were mindful of challenges arising from inflation, noting commodity prices were high while volatile capital inflows were also a concern. They also agreed to study regional infrastructure financing and disaster risk insurance, the report said. The finance ministers were meeting alongside an Asia Development Bank annual meeting held concurrently in Vietnam's capital. More…...
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| The anatomy of silver's deep dive Posted: 05 May 2011 11:47 AM PDT by Steven M. Sears Back when silver broke toward $50 in the late 1970s, and then declined, the metal only traded in the futures market. Since then, the Securities and Exchange Commission has allowed financial engineers to create exchange-traded funds that hold commodities like gold and silver. This has made it possible for anyone to invest in commodities in the stock market without opening a separate futures trading accounts. Commodity investing is now as easy as buying stock. But the decline in silver is proving that is not really true. Silver's price is influenced by futures, equity derivatives and stock trading. The action in all the different markets weighs heavily on silver's price. Selling pressure now stretches across three markets — the futures, stock and options. The selling is exacerbated by an ultrashort exchange-traded fund loaded with derivatives that sharply increase in value if silver prices decline. [source]
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| Capital Context Update: Systemic Risk Rising and Equity Underperformance Posted: 05 May 2011 11:34 AM PDT
From Capital Context  The only chart we dare show today but note divergence in oil/silver at close and 'stability' of gold. Credit and equity markets stumbled significantly mid-afternoon as clearly a crowd of over-levered commodity longs reached for whatever was green in their books. While there will be chatter of corporate bond yields dropping (rallying) today, the real picture was quite bleak with what really matters (the spread or risk premium) rising notably as the need for relative safety saw TSYs bid all across the curve - helping all-in yields look better. Equities underperformed credit (beta-adjusted) close to close, helping our very profitable ETF Arb position close out a 19% profit from Monday's open. A 1bps compression in IG bond yields and flat HY bond yields were much more complementary (thanks to the 5-6bps rally in TSYs) than the decompression we saw in IG and HY CDS (pure credit) and we discuss this in a trade idea we published earlier today. The real story of the day of course is in commodities with the most dramatic moves many will ever experience but away from the momentum chasers and algo-drivers, many of the same themes played out under the covers today in credit, equity, and vol - albeit with some serious attitude adjustments intraday. Credit drifted modestly tighter in the morning (from a significant gap wider open) and just managed to get into the green around mid-afternoon. IG was tracking S&P futures pretty well with relative moves but when 'the bust' happened around 245ET ish, IG ripped across its range taking out the wides of the day in a real hurry. This move was much less liquid/smooth than the S&P futures dip suggesting someone dumped a lot of long credit in a hurry there . HY did jump but was actually a little more consistent and had not shown the early positivity as much. Credit ended pretty much unch from its open of the day session while stocks closed down - though are drifting up very gently after-hours. HY and IG were pretty balanced today (beta-adjusted) though in absolute spreads HY underperformed - we suggested an ETF-driven strategy to participate in the HY-IG decompression we believe is thematic in an earlier comment . Breadth in credit was negative with 4 wideners to every tightener while curves were relatively balanced between steepeners and flatteners (though IG and HY saw modest flattening at the index level). We won't waste any time discussing Silver/Oil but it is very noteworthy that the two assets were synced at the hip most of the day until the very last few minutes when silver dropped away. Gold/Copper were down 2.5-3% on the day (not small) but a fraction of the shifts we saw in Oil/Silver (i guess that's what happens when he who must be obeyed gets his way with margin hikes and lifting limits). Trichet's dovishness and the dreadful macro data over here were enough to inch the EUR off its ivory tower and send the excessively long spec crowd covering. While DXY did indeed have a day, it is merely back to 9 day highs and is still -11% from Jackson Hole (and as a reminder oil is +44% from the same time still so please don't be getting too excited about growth prospects and margins again quite yet). TSY yields closed at their best of the day - no late day sell-off as stocks recovered for them?might just tell you something about risk appetite and algo-driven VWAP reversion as we managed to rip 10pts off the lows in the last few mins of S&P futures trading even as the themes of the day did not shift. The interplay between VIX and Implied Correlation suggests we saw an early macro overlay once again followed through the middle of the day by single-name protection buying with a crisis peak around the 245ET time, from which vol was sold off. Implied correlation closed at its lows of the day - while VIX was not - suggesting more appetite for single-name protection once again today as investors discriminate more. SPY skews were relatively flat. CMBX tranches once again showed the relative performance tilt between super-senior and equity/junior tranches that we spoke about before indicating a pressure of demand for long correlation (or rising systemic concerns) in that space starting to re-appear . ABX was down overall as housing confirmed its double dip. Oil weakness stumbled sovereign spreads in many EM and CEEMEA nations - a link we have discussed and traded before - but Western European sovereigns underperformed as the Greece is not Ireland is not Portugal arguments were trotted out and last night's True Finns comments hardly helped. Trichet did reflect later in the day that he was more than willing to raise rates at the same time as monetize debt so all is well over there then. Financials underperformed non-financials broadly in credit. We did see net buying in US financials but more importantly it was clear that the buying was reducing duration as anything over 7 years was net sold on the day among them. The 7-12Y segment of the curve saw considerable selling pressure in corporate bond land and perhaps explains some of the added momentum in TSYs today as investors rotated from corps to TSYs - extending duration modestly in that respect.  Very clear up-in-quality rotation in credit relative to equities today as chaos reigned. Contextually , Transports and Consumer Cyclicals underperformed in credit (beta adjusted) relative to equities whereas Energy and Utilities were sold considerably more in equity land than credit expectations would have thought (as were Basic Materials). Financials were balanced. Low beta CDS actually underperformed higher beta today (Energy and Utes?) as high beta very modestly underperformed low beta in equity terms and the same in vol land. The most notable theme in capital structures today was a very clear outperformance for better quality credits relative to equity versus lower quality credits . Bottom-up, Services and Consumer Cyclicals were the only sectors to diverge on average with higher equity prices and wider spreads - the rest of the sectors agreed on direction (if not velocity). Consumer NonCycs, Financials, and Healthcare were the biggest average wideners today (the latter being more about some event risk names). Transports were the only sector whose average spread was tighter on the day. The names with the largest relative underperformance in credit versus equity included LH, MRK, COST, TU, and KBH and at the other end with credit outperformance over equities AVP, MUR, NXY, COP, and APA (a list dominated by Energy names!).
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| Posted: 05 May 2011 11:00 AM PDT The 5 min. Forecast May 05, 2011 12:56 PM Addison Wiggin – May 5, 2011 [LIST] [*]Ben Bernanke's "secret" plan to support the dollar: Let the economy tank! Wow… it's already working. [*]Dollar rallies, but for how long? Abe Cofnas sizes up U.S., Aussie, loonie, plus your last chance to snag a Strategic Currency Trader discount [*]Manipulation? Incompetence? Alan Knuckman on silver, margin requirements and J.P. Morgan [*]Superman makes the fight-or-flight choice, surrenders U.S. citizenship… Canada woos him [*]"Join the club" — Readers sympathize with the sterling-credit realtor who has less chance of getting a mortgage than a fry cook [/LIST] "The Federal Reserve believes that a strong and stable dollar is both in American interests and in the interest of the global economy," said Federal Reserve chief Ben Bernanke in the Fed's press conference last week. While watching the press conference, we had a nagging suspic...
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| Guest Post: Today's Silver Scandal Posted: 05 May 2011 10:40 AM PDT
From Janet Tavakoli of Tavakoli Structured Finance Today's Silver Scandal Under-30 silver traders weren’t alive to see the billionaire Hunt Brothers bankrupted by silver trades, and those under-45 years old probably never read about it. The Hunts’ silver debacle occurred after the “soybean caper,” but before the CFTC fined them $500,000 in a July 1981 out of court settlement for blatant violation of commodities laws in their attempt to corner beans. The Hunts had borrowed money to buy silver and leveraged themselves in silver futures in an attempt to corner the market.
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| Posted: 05 May 2011 10:39 AM PDT
Courtesy of MIKE WHITNEY of Grasping at Straws A bleak jobs report sent stocks and commodities tumbling on Wednesday, while new signs of distress gripped the service industries index. An updated report from the ADP showed that private sector hiring slowed more than expected from March to April as companies struggled to meet rising raw material costs and flagging consumer demand. The service industry index (ISM) --which "ranges from utilities and retailing to health care, finance and transportation"--slumped to its lowest level since August signaling widespread deceleration and a progressive deterioration in the fundamentals. The turnaround has forced economists to rethink their projections for 2nd Quarter GDP and to watch more vigilantly for signs of contraction. This is from the New York Times:
So, even the New York Times agrees that unemployment would be nearly 16 percent if the figures were correctly calculated. Those are Depression numbers. 14 million people are out of work and record numbers of people are on food stamps (44 million) Wednesday's down-market sent commodities plunging as signs of emerging deflation pushed investors into Treasuries. Gold and silver fell sharply. Troubles in Japan, China and the eurozone have intensified fears of a global slowdown and perhaps another bout of recession. The dollar strengthened for the third straight session, in spite of the Fed's zero rates and $600 billion bond buying program. Trillions of dollars in monetary and fiscal stimulus have jolted stocks back to life, but debt-deflation dynamics in the broader economy are as strong as ever. Unemployment remains stubbornly high, consumer retrenchment has reduced discretionary spending, and housing continues its inexorable nosedive. The stock market continues to inch higher buoyed by central bank liquidity and margin debt, but investors are increasingly skittish and searching for direction. The soaring price of gas has shifted consumer spending from retail to energy consumption, the opposite of what the Fed had intended. This from Early Warning:
Welcome to Peak Oil; the era of resource scarcity has begun. Today's troubles will to be a recurrent theme in the years ahead as the economy goes from boom to bust and previous levels of growth become more short-lived and unsustainable. Naturally, our leaders have settled on a strategy for addressing the impending energy shortages; endless war disguised as humanitarian intervention. This is the type of shortsightedness that passes as policy. The main economic indicators are still turned up, but just barely. The economy is hanging by a thread. Loan demand is weak, wages are flat, and markets are on a knife-edge. Here's a clip from The Big Picture:
There's no demand for credit because consumers are in the red and need to balance their accounts. ("93 percent reported all their credit needs met in March.") It's pointless to focus on getting the banks to lend, when people are broke and don't want to borrow regardless of rates. Just like its pointless to dump monetary stimulus into the stock market if it pushes up food and energy prices (headline inflation) reducing consumers ability to spend on other things. This isn't hard to figure out; it's Econ 101. So, why is the policy upside-down? That said, the stock market should continue to trend upward for another couple months until the Fed's bond buying program ends and investors realize that the real economy is stuck in the ditch. But, for now, it's "Party like it's 1929". Bernanke's punch bowl is overflowing and there's still plenty of time to make money. The hangover comes later.
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| Market Manipulation Ideas Spreading ‘Beyond Lunatic Fringe’? Posted: 05 May 2011 10:30 AM PDT By Murray Coleman And that's an ominous sign, writes Peter Brimelow. The veteran MarketWatch columnist talks this morning about a discussion with gold bug Richard Russell of Dow Theory Letters. The question Brimelow posed: Is he concerned about an FDR-type confiscation of gold? (You might remember last month Russell became concerned that precious metals markets were feeling the strain of a number of outside pressures.) "I've thought about this at length, and I've arrived at what I believe to be the correct answer. The answer is — No, the government will definitely not call in the gold," Russell responded. He pointed out that gold is now held through ETFs like the SPDR Gold Trust (GLD) by pension funds, endowments, large hedge funds, corporate reserves and state treasuries. Brimelow responds: "This strikes me as an odd answer. Were the people who owned gold in 1933 really so much less powerful?" Economist Dennis Gartman wrote Wednesday morning in his newsletter geared towards institutional clients:
The idea of manipulation seems to be spreading "beyond the lunatic fringe where many investment letters dwell (often profitably)," Brimelow observes. Another disconcerting piece getting plenty of attention this morning is a report first published Wednesday by the WSJ that finds growth in high-speed electronic trading in commodities and currencies coinciding with a series of "flash crashes" in those markets. With the iShares Silver ETF (SLV) down more than 4% Thursday morning, it's unlikely such concern about ominous forces manipulating commodities is going to fade. Click Here for the original source.
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| Janet Tavakoli: Today’s Silver Scandal Posted: 05 May 2011 10:23 AM PDT Today's Silver Scandal TSF – May 5, 2011 Under-30 silver traders weren't alive to see the billionaire Hunt Brothers bankrupted by silver trades, and those under-45 years old probably never read about it. The Hunts' silver debacle occurred after the … Continue reading
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| Mike Krieger Exposes "The Big Lie" Posted: 05 May 2011 10:19 AM PDT
From Mike Krieger of KAM LP Gold today is no longer related to the normal economic cycle of supply and demand, jewelry, Indian wedding seasons, rain in the Middle East. All those things are passé, forget about them. Gold is driven today by one overriding and I am afraid, at least in my opinion, an irresistible and irreversible trend. A fundamental, global and growing insecurity… A fundamental, global and growing lack of confidence of the world in everything they were brought up to believe. Institutions, insurance companies, banks, issuers of mortgages, ratings agencies, equities, sovereign debt, Federal Reserve Banks. Portugal and Iceland. Greece and Spain. Currencies. What is left? What is left? Bureaucracy defends the status quo long past the time when the quo has lost its status.
I feel completely blessed to be alive right now. To be a witness and participant in a moment in human history that will be written about and passed down in tales for as long as humanity remains on this planet. We are currently observing the evaporation of what Nazis referred to as “The Big Lie.” In very basic terms the concept of The Big Lie is that if you are going to lie you may as well lie big. So big in fact that the majority of well meaning citizenry could never imagine anyone lying on such a grand scale (particularly not their government “officials”) so that they don’t even question the basis of their own reality. In the case of the United States the Big Lie is that we have a free market capitalist economy. Instead we have a corporatist/fascist economy that enriches three main groups. Wall street financiers, the military industrial complex and large multi-national corporations that don’t pay taxes. So that begs the question, how can the American people be so brainwashed into thinking they live in this false reality? It’s very easy. It’s all about the money. The Bernank’s inaugural press conference last week was nothing short of a disaster. The Wizard of Disneyland came out from behind his curtain and despite softball questions from “journalists” couldn’t make any sense whatsoever. I just listened to it again a few minutes ago. His answers were full of contradictions and backwards logic. The first time the word “inflation” came out of his mouth in response to a question he started stuttering. When asked about the dollar he said “the treasury is the spokesperson for the dollar.” Come again Bernank? They are FEDERAL RESERVE NOTES and you create them out of thin air. And lots of em. The Big Lie. It is very timely that I get to write today for the first time in a month. Last week, the entire Big Lie was collapsing left and right. When the Bernank spoke, gold soared. Obama came out with his latest reality tv show episode called “The Birth Certificate.” Still his approval ratings plunged. Gasoline was spiking. Confidence in Disneyland was circling the toilet bowl. Nothing was working for the establishment. So what did you think would happen this week? One of the things I have been waiting to see was when people in the “establishment” start to speak out more and refuse to cooperate with the more psychopathic elements with the government, Wall Street and the military/industrial complex. I am now starting to see increased signs of this. This is still under the radar but it is happening and accelerating. Sides are being taken. This is going to be very interesting to watch. Just remember, the system is coming down and there is nothing they can do to stop it. They can only separate you from your real money (gold and silver) before it becomes clear to all. The action this week is a last ditch attempt. The game is already over.
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Are we on the verge of a dollar collapse? Don't believe the skeptics. The truth is that there is no currency in the world that is stronger than the old greenback. The U.S. dollar is the reserve currency of the world. Virtually all of the nations on the face of the earth use it for trading and they always will. Why? Because the U.S. dollar is awesome. No currency on earth can compete with our awesomeness. So what that the dollar hit 
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